National ® Association of Purchasing Management The Purchasing Pipeline March 2014
N.A.P.M.-OKC Tuesday, March 11, 2014 Meeting 5:45 PM - 7:45 PM N.A.P.M.–OKC, INC. AFFILIATED WITH THE INSTITUTE FOR Whiskey Cake SUPPLY 1845 Northwest Expressway MANAGEMENT™ Oklahoma City OK 73118
INSIDE THIS ISSUE: Topic: Key Performance Indicators
Buyer Vendor Round Up 2 Presenter: Steve Smith Membership Report / 3 Note from the VP
Upcoming ISM Seminars 4
Taking Your 5 Negotiations Global
Program Department 6-7
ISM 2014 Management 8 Conference Map to Whiskey Cake 9
Raising Expectations 10- 11
Raising Expectations 12- Cont. 13
2013-2014 Board of 14 Please join us for a discussion on Key Performance Indicators!
Who Do We Represent 15 Dinner will be catered and provided.
A Special Thanks 16
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The President’s Pen
Happy February N.A.P.M.- Understanding how a person OKC, processes and handles change can certainly help you work I certainly hope most of you with them in a more produc- are staying warm through tive manner. these very cold winter months. It sure has been a Looking forward, March is Sup- cold one. I don’t know about ply Chain Management you, but I’m sure ready for Month. Be on the lookout for some extended sunshine! our Community Service event this March. Usually we sup- I really thought our speaker port a local charity in some last month, Eric Werner, was way in honor of Supply Chain very informative. He told us all Management Month. More about the OKC MAPS Pro- news about that to follow. ject. I really enjoyed it and I learned a lot too. They have Thank you Access Midstream accomplished many things and for allowing us to use your have many more left still. I’m facility. Thank YOU N.A.P.M.- already a proud Oklahoman. OKC members for being a part of our group! We are glad that you are! When the project is reaches I hope to see you at the meet- completion, it will be fun to ing Tuesday, February 11, show out of town guests our 2014. beautiful city.
This month, we will hear from Larry Holdge on Change Man- agement. Change Management is an interesting topic that I look forward to hearing about. Everyone handles change differently.
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Supply Management. Maximizing Opportunities. Managing Risk PAGE 3 March 2014 Membership Report
“Our affiliate exists to provide value to Changes: Oklahoma’s economy and our member- C.P.S.M., C.P.M. & A.P.P. Report ship by: educating and developing our Please let us know if you have changed N.A.P.M.-OKC Membership C.P.S.M.’s – members; enhancing our employer’s jobs, addresses, or e-mail addresses, so February 25, 2014 11 (5.0%) operations; and advancing the supply we can keep our local roster current. N.A.P.M.-OKC Membership C.P.M.’s – management profession.” Since “The Purchasing Pipeline” and February 25, 2014 31 (14.3%) other notices are sent to you by e-mail, N.A.P.M.-OKC Membership A.P.P.’s – ISM National Membership, this is very important, because you February 25, 2014 5 (2.3%) January 31, 2014 42,099 might miss out on an up-coming event. We will inform ISM of the change. We Donna Dolezel, Membership Director, N.A.P.M.-OKC Membership, would also like to know if you have re- 886-3293, February 25, 2014 217 ceived your CPSM, C.P.M. or A.P.P. certi- [email protected] fication, so we can congratulate you in Cara Noltensmeyer, Membership Vice- “The Purchasing Pipeline.” Chair, 552-4789, New Members: [email protected] Clint Croasdale Horizon Hydraulics Chad Heathco Hobby Lobby Jared Rogers SandRidge Energy Tiffany Specht Chickasaw Nation Tony McSwain Chickasaw Nation- A Note from the VP... In case anyone is counting down the ship states, we have already secured a many vendors as possible! We have days like I am, spring is just around the location and time, Oklahoma City just a few short weeks to get vendors corner. The actual first day is signed up and donations for our March 20 to be specific. raffle drawing (it’s actually just a Despite spring only lasting little over six weeks from when I’m about two, maybe three, writing this!!). Please help out in weeks here in Oklahoma, this anyway you can since it takes means we’re one step closer several hands to help build such a to that wonderfully warm large event! weather. I think I’m even more If there are any questions, from ready this year than usual. Can vendors or otherwise, please let me anyone tell I’m a summer know so I can help out the best person? way I can! Looking forward to In addition to warmer hearing from everyone so we can weather, the quickly passing make this another great BVRU! time also means that we are Thanks, only weeks away from the Community College on April 8th from 27th Annual Buyer Vendor Round Up 6-8 p.m. Now, we need to get the Elizabeth Jones – Vice President (BVRU)! As my email to the member- word out as soon as possible to as N.A.P.M. – OKC
PAGE 4 Upcoming ISM Conferences and Events Below is the list of ISM Conferences and Events:
For seminar details, please call the ISM Customer Service Department at 800/888-6276 or 480/752-6276, extension 401, or visit the ISM Web site at www.ism.ws and select Education
2014
Title Date Location
Finance for the Supply Management Profes- Mar 11, 2014 - Mar 13, San Diego, CA sional 4518 2014
Fundamentals of Inventory Management Mar 17, 2014 - Mar 18, Dallas, TX (formerly Principles of Effective Inventory 2014 Management) 4336
2014 Annual Institute for Supply Manage- May 5, 2014 Las Vegas, NV ment™ — Michigan State University Awards for Excellence in Supply Management and the Annual R. Gene Richter Scholarship Awards
ISM2014 International Supply Management May 5-7, 2014 Las Vegas, NV Conference
ISM Risk Management Summit July 16, 2014 New York City, New York
ISM Metrics Symposium July 17-18, 2014 New York City, New York
CPO in the Making Workshop Fall 2014 Tempe, AZ
Did you know you can submit your updated contact information on our website? www.napm-okc.org
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ISM 2014 International Supply Management Conference
PAGE 6 Program Department
Hello N.A.P.M – OKC members!
How time flies when you are having fun! We are already in the month of March!! Where did February go??
For those of you who did not make it to the February meeting – the Programs de- partment changed it up a bit (coincidently our speaker topic was Change Man- agement).
We had round tables and broke out into smaller groups and had discussions re- garding challenges around change and potential ways to improve! This is very different from our normal set-up at meetings and we appreciate everyone being very patient and working with us through the process.
If we have not had a chance to visit with you, please introduce yourself to us at the next meeting and let us know what topics are of interest to you and what you would like to see in upcoming meetings! We would love to hear from you!
Our speaker for February was Larry Holdge who is the GM of Cimarron – a divi- sion of Curtiss Wright group. His background was in a variety of different com- panies ranging from Delta Faucets, GE Artificial Lift to Cimarron. He had some great personal examples and stories to share and considering his breadth of ex- perience they were certainly all very unique! Larry brought up some great points which were also echoed by our break out groups – change is less about the process – more about people, their perceptions and COMMUNICATION!
Some reading material that was recommended to help us understand change man- agement better was Abraham Maslow – The Hierarchy of Needs Theory Aubrey Daniels – Performance Management
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Supply Management. Maximizing Opportunities. Managing Risk PAGE 7 Mark your calendars for the following events in 2014!
N.A.P.M. Upcoming Events for 2014
March 11th – Key Performance Indicators (KPIs) April – Buyer – Vendor roundup May 13th – Event to be announced June 10th – Safety and its relevance in your industry July 8th – Being Lean! Lean Six Sigma August – Event to be announced September – Event to be announced October 14th – Facility Tour – Carlisle Foodservice Products November 11th – Event to be announced December 9th – Holiday party
Thank you for your time and we look forward to seeing you at our next event! Your Programs team! Jason, Aparna and Cole
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Supply Management. Maximizing Opportunities. Managing Risk PAGE 9 Map to Whiskey Cake
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Raising Expectations
Maximize the creative potential of the supply management team by embedding a dynamic culture of innovative thinking.
Innovative thinking is all about identifying new ideas and solutions to problems — the process of originating and producing something that will add value but does not yet exist. Increasingly, supply management is being called on by company executives across businesses and industries to contribute new value to the organization. How can we positively encourage our supply management organizations to dedicate some of their time and resources to thinking innovatively while remaining focused on day-to-day objectives? While there is no one approach that will work in every possible situation, there are several key components that lend themselves to driving this type of thinking within the organization.
Focus on the People Every successful organization is built by focusing on people and encouraging positive behaviors. A corporate culture that values innovation usually recognizes and rewards employees for innovative thinking. It's one thing to state that you value innovation, but quite another to actively foster the investment of time and energy required to create new ideas. An organization that challenges everyone to develop and submit their innovative ideas, but then does nothing to help make that happen, nets very little value. Simple recognition is often more powerful than financial incentives. Being perceived as an expert by peers and management serves as a huge incentive to employees. Having their names associated with such changes and improvements instantly increases employees' self-worth and willingness to engage in future endeavors. How can you begin to embed innovative thinking in your organizational culture? Start with specific and objective expectations with delineated rewards. For example, supply management job descriptions should include expectations for "trailblazing new areas and ideas," and performance assessments should evaluate to what extent this is happening at an individual level, citing specific examples that occurred throughout the assessment period. Also, remember that not all ideas generated represent large dollar savings or solve decades -old, complex organizational problems, but these ideas may prove quite valuable in other ways. Setting the expectation for this type of thinking and behavior, and assessing the efforts made along these lines, goes a long way toward embedding innovative thinking in the organization. Organizations also need to reward individuals who go a step further and lead the way with innovative ideas as examples to the rest of the organization. While recognition is a key component of a reward, organizations should also consider financial incentives in this case,
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returning a part of the savings or value created to the individual responsible for the idea. This can take the form of a gift certificate, a spot bonus or a portion of an annual bonus tied to the value created. Whether the benefit was a one-time, or repeatable, occurrence, individuals are more likely to continue innovative thinking on subsequent projects and situations when they have personally shared in the value generated for the organization. Employee engagement is another important aspect of motivating employees to contribute above and beyond what is normally required to complete their work. Engaged employees are more likely to collaborate with suppliers and with each other for process and service innovations. True employee engagement comes about through a proper mixture of the company practices described earlier, a positive work/life balance, total rewards and opportunities to learn and try new things. Finally, allow people to fail sometimes. Ideas may not work, and organizations must foster a culture that allows employees to experiment without the fear of being punished for failed experiments. When people know that mistakes are part of the learning and improving process, and that every successful person has some degree of failure in their past, they'll be more open to take risks and think in new, innovative ways. It is always important to remember that failure and innovation are related. New ideas must be valued by the organization and, likewise, they must be subject to a structured challenge-and- experimentation process.
To do this, engage subject-matter experts and others who might have a vested interest (or interface) with the new idea to collectively review, provide constructive questioning and brainstorm the idea as a team. Of course, this requires a willingness to take part in open and objective debate regarding the innovative idea and determine its validity and overall sustainability by tapping into the collective knowledge of the team.
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Raising Expectations Cont.
Groups of individuals can add knowledge and ideas far exceeding those of any single individual, driving additional value that might not be discovered otherwise. Sometimes, supervisors tend to focus on their best individual contributors to demonstrate innovative thinking behavior, ignoring the power of the larger team. However, creating a culture that values teamwork can have long-lasting, positive implications. When you ask someone at their retirement for examples of the one idea, project or accom- plishment they are most proud of during their career, they rarely talk about an individual accomplishment. Instead, they talk about situations where they worked with others to understand the situation fully, generated alternative ideas, selected the best fit and implemented the solution or activity that resulted in significant achievement. Also, we should not overlook the considerable value obtained by close collaboration with our best suppliers. They bring an unprecedented amount of perspective to the table on competition, best practices, production constraints, market challenges and opportunities that by ourselves we have not recognized. One well-known example of this type of innovation is Procter & Gamble's "Swiffer®" floor cleaner — the idea for this product originated from a supplier suggestion. Appropriately integrating our suppliers into our planning and work processes can open the minds of our best supply management talent to think in new directions. The Diversity Lever Closely related to teamwork's contribution to driving innovative employee thinking is diversity. A culture that values innovative thinking can demonstrate your organization's commitment to diversity and inclusion. By leveraging the knowledge, experiences and perspectives from a variety of cultures, languages and geographies, organizations tap into a wide range of new ideas and definitions of value. Given the global nature of supply management in most organizations today, this diverse insight is exactly what is needed to open the minds of our employees to other possibilities, understand fresh perspectives and get excited about learning something new. It's a great doorway to allow employees to engage in relevant innovative thinking and subsequently deliver additional value to the organization. And because supply management has an opportunity to interact with diverse functions within the organization, it's an ideal position to help foster new ideas and help individuals understand the big picture. Together, we add value by readily identifying real business issues and how supply management methodologies or actions help provide solutions or potential opportunities. Aside from organizational and cultural considerations, success requires leaders who are adept at managing an innovatively thinking organization. Too often, employees may attempt to provide innovative ideas that die an early death because management does not remove
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barriers, align priorities across the organization or sponsor the idea with senior management to obtain the necessary resources to implement the idea. When an organization as a whole truly focuses on these key components to driving innovative thinking, employees will recognize that commitment through the organization's underlying actions, and believe their ideas to be welcome and worthwhile. As a result, the organization will continue to benefit from contributors' efforts as time goes on, developing new ideas and changing directions as needed to best suit its customers' needs. In fact, the long-term value of inspiring innovative thinking in our organizations brings to mind a quote from Oliver Wendell Holmes: "A mind once stretched by a new idea never regains its original dimensions."
Author(s):
Jay Pendergrass Jay Pendergrass is executive director, procurement for Fluor Enterprises in Dallas. June 2011, Inside Supply Management® Vol. 22, No. 5
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2013—2014 Board of Directors
Position Name President Stefanie K. Jones
Vice-President Elizabeth Jones Past President/ Forum Representative Peggy Thurmond Secretary Tammy Tittle Treasurer TJ Jordan Vice-Treasurer Tim Bishop CPIM, CPSM Dan Gatewood, CPSM, CPSD, Pro-D Director SCMP Pro-D Vice Chair Jeffery Richardson, CPSM, CPSD Membership Director Donna Dolezel
Membership Vice Chair Cara Noltensmeyer Program Director Jason Walker
Program Co-Vice Chairs Aparna Popley Cole Werner PR Director Randy Graves
PR Vice Chair Andrea Large Technology Director Angela Smith, C.P.M.
Technology Vice Chair Jamie Gilmore Special Activity Director Grant Skinner THE PURCHASING PIPELINE
PAGE 13 Supply Management. Maximizing Opportunities. Managing Risk
Who Do We Represent?
Access Midstream Dolese Bros. Co. Opeco Inc. Astellas Pharma Tech Enogex Pelco Products Autocraft Industries Enviro Systems Inc. Picerne Military Housing Automation-X Exco Resources Pioneer Telephone Cooperative Autoquip Corporation Fife Corporation Inc. Beam's Industries Franklin Electric Water Transfer PM&L Manager Haliiburton Best Buy System Progressive Stamping, LLC Big D Industries Inc. GE Oil & Gas Remy Inc. Bimbo Bakeries USA George Fischer Central Plas SandRidge Energy Blue Night Energy Group Tics SemaSys Inc. Borets Weatherford Halliburton Security Solutions Bradford Industrial Supply Co. Hobby Lobby Serco Inc Cameron Compression Sys- High Mount Exploration and Pro- Smart Lines LLC tems duction Smith & Nephew Inc. Carlisle Foodservice Products Industrial Gasket SORB Technology Inc. Cass Polymers Inc. Integris Baptist Health Center Southwest Electric Co. Chapparral Energy Inc. J & E Supply & Fastener Co. Surface Mount Depot Chappell Supply Johnson Controls, Inc. T D K Ferrites Corp. Chesapeake Energy KimRay Inc. Tronox Chickasaw Nation Knights of Columbus Universal Well Site Solutions Chickasaw Nation Div of Com- KP Supply University of Central merce Linn Energy Oklahoma City of Oklahoma City Little Giant Pump Co. University of Oklahoma Circo Energy Group Lopez Foods Inc. US Silica Co. Cleveland County Marathon Oil Company USA Compression CompSource, Oklahoma MD Building Products Vaughn Foods, Inc. Conoco Phillips Modular Svcs Co Walker & Sons Enterprises Inc. Continental Resources, Inc. MTM Recognition Corporation Warren Cat Cooper Compression Noble Energy WellMark Co COTPA OG&E West Oak Industries Coughlin Equipment Oklahoma City Community Col- Windsor Energy Covercraft Industries Inc. lege York International DCP Midstream Oklahoma Insurance Department Devon Energy Oklahoma Publishing Co.
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National ® Association of Purchasing Management A Special Thanks To March 2014
We would like to give a special thank you to Larry Holdge who is the GM of Cimarron – a division of Curtiss Wright group for his presentation on Change Management..
On behalf of N.A.PM.
Always Remember:
“Changing an
organization is primarily changing the process of people. To change the people you must first work hard to understand the people. Focus more time, energy and attention on the people than the process. If you do that the people will help you change the process.”
Larry Holdge
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